Restaurants Barred from Adding LPG or Fuel Surcharge to Bills, CCPA Warns of Strict Action

The Central Consumer Protection Authority (CCPA) has directed hotels and restaurants not to include charges such as “LPG surcharge” or “fuel cost recovery” in customer bills.  

The instruction, issued under the Consumer Protection Act, 2019, states that such additions will be treated as unfair trade practices if applied automatically. 

As per news reports, the authority said only the listed menu price and applicable taxes can be charged. Any other levy imposed by default would fall outside the permitted billing structure. 

Operational Costs to be Built into Prices 

The CCPA clarified that expenses such as LPG, electricity, and fuel are part of routine business operations. These costs are expected to be reflected in menu prices rather than charged separately. 

It noted that forcing consumers to pay such add-ons amounts to an unfair practice under Section 2(47) of the Act. Bills should reflect the final payable amount, excluding only statutory taxes. 

Complaints and Monitoring 

The direction follows complaints received through the National Consumer Helpline and inputs from media reports. The authority observed that several establishments were adding these charges without explicit consent. 

It added that renaming such levies does not change their nature. Charges introduced under different descriptions but applied automatically would still be considered a violation of existing norms, including the 2022 service charge guidelines. 

Enforcement and Grievance Redressal 

The CCPA said it is monitoring compliance and warned of action in cases of non-compliance. Consumers can seek removal of such charges at the billing stage. 

If unresolved, complaints may be filed through the helpline (1915), the mobile application, the e-Jagriti portal, or with local authorities. 

Rising Fuel Costs Across Sectors 

The advisory comes at a time when fuel prices have increased across sectors. Domestic LPG cylinder prices have risen by ₹60, while commercial cylinders are up by ₹115. Crude oil prices recently crossed $115 per barrel before easing. 

Airlines have introduced fuel surcharges, with charges ranging from ₹199 to ₹2,300 per sector depending on routes. Aviation turbine fuel accounts for around 35-45% of airline operating costs. 

Read More: Government Announces Mundra Port Fee Waiver to Support Exports Amid West Asia Crisis! 

Conclusion 

The direction reiterates that businesses must incorporate input costs into listed prices, with no scope for automatic add-on charges beyond taxes. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.